What is credit score (CIBIL score) and importance of credit history?

A credit score is a 3-digit number that shows the probability of you repaying your loans. It is used by banks and lenders to assess the risk they are taking by lending money to you. It ranges from 300 to 850. 

Your credit history is the first thing that is checked by banks and lenders, whenever you apply for a loan. Credit history allows banks and lenders to determine your ability to repay the loan on time by checking when and where you applied for credit, whom you borrowed money from, and whom you still owe. Thus, the major importance of having a credit history is your risk assessment.